Hostname: page-component-78c5997874-xbtfd Total loading time: 0 Render date: 2024-11-10T10:22:13.917Z Has data issue: false hasContentIssue false
  • English
  • Français

Economic and Nutritional Implications from Changes in U.S. Agricultural Promotion Efforts

Published online by Cambridge University Press:  12 June 2017

Shuay-Tsyr Ho ,
Bradley J. Rickard  and
Jura Liaukonyte
Shuay-Tsyr Ho
Affiliation:
Charles H. Dyson School of Applied Economics and Management, Cornell University, Ithaca, New York
Bradley J. Rickard
Affiliation:
Charles H. Dyson School of Applied Economics and Management, Cornell University, Ithaca, New York
Jura Liaukonyte
Affiliation:
Charles H. Dyson School of Applied Economics and Management, Cornell University, Ithaca, New York
Get access Rights & Permissions [Opens in a new window]

Abstract

Promotion programs that subsidize advertising for exported agricultural products continue to be used despite much criticism that they are an inefficient use of taxpayer money. At the same time, others have advocated for an increase in funds to support domestic advertising for fruits and vegetables. We investigate the economic and nutritional effects from changes in both export and domestic promotion expenditures for horticultural and nonhorticultural commodities. Simulation results show that even modest decreases in trade promotion expenditures coupled with a corresponding increase in domestic promotion efforts have the capacity to influence domestic market conditions, caloric intake, and nutrient consumption.

Keywords

advertisingexport promotionhorticulturenutrient intakepolicy reformsimulation modelQ13Q17Q18
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 4 , November 2014 , pp. 593 - 613
Copyright
Copyright © Southern Agricultural Economics Association 2014

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alston, J.M., Mullally, C.C., Sumner, D.A., Townsend, M., and Vosti, S.A.. “Likely Effects on Obesity from Proposed Changes to the U.S. Food Stamp Program.” Food Policy 34,2(2009): 176-84.Google Scholar
Alston, J.M., Norton, G.W., and Pardey, P.G.. Science Under Scarcity: Principles and Practice for Agricultural Research Evaluation and Priority Setting. Ithaca, NY: Cornell University Press, 1995.Google Scholar
Alston, J.M., Sumner, D.A., and Vosti, S.A.. “Are Agricultural Policies Making Us Fat? Likely Links between Agricultural Policies and Human Nutrition and Obesity, and Their Policy Implications.” Review of Agricultural Economics 28,3(2006):313-22.Google Scholar
Basmann, R.L. “A Theory of Demand with Variable Consumer Preferences.” Econometrica 24,1(1956):47–58.Google Scholar
Beghin, J., and Jensen, H.. “Farm Policies and Added Sugars in U.S. Diets.” Food Policy 33,6(2008):480–88.CrossRefGoogle Scholar
Capacci, S., and Mazzocchi, M.. “Five-a-Day, A Price to Pay: An Evaluation of the UK Program Impact Accounting for Market Forces.” Journal of Health Economics 30,1(2011):87–98.Google Scholar
Carman, H.F., and Alston, J.M.. “California's mandated commodity programs.” The Economics of Commodity Promotion Programs: Lessons from California. Kaiser, H.M., Alston, J.M., Crespi, J.M., and Sexton, R.J., eds. New York, NY: Peter Lang Publishing, Inc., 2005.Google Scholar
Cox, D.N., Anderson, A.S., Reynolds, J., McKellar, S., Lean, M.E.J., and Mela, D.J.. “Take Five, a Nutrition Education Intervention to Increase Fruit and Vegetable Intakes: Impact on Consumer Choice and Nutrient Intakes.” The British Journal of Nutrition 80,2(1998):123-31.Google Scholar
Ferrechio, S. “Doggy Glitter Gets a Share of Farm Bill Billions.” Washington Examiner. Internet site: http://washingtonexaminer.com/article/1354981 (Accessed June 18, 2012).Google Scholar
Flegal, K.M., Carroll, M.D., Ogden, C.L., and Curtin, L.R.. “Prevalence and Trends in Obesity among U.S. Adults, 1999-2008.” Journal of the American Medical Association 303,3(2010): 235-41.Google Scholar
French, S.A., and Stables, G.. “Environmental Interventions to Promote Vegetable and Fruit Consumption among Youth in School Set-tings.” Preventive Medicine 37,6(2003):593–610.Google Scholar
Gelber, L. “Farm Bill Should Buy the Farm.” Waste Watcher: Citizens against government waste. Internet site: http://cagw.org/media/wastewatcher/farm-bill-should-buy-farm (Accessed June 2012).Google Scholar
Glanz, K., and Yaroch, A.L.. “Strategies for Increasing Fruit and Vegetable Intake in Grocery Stores and Communities: Policy, Pricing and Environmental Change.” Preventive Medicine 39,2(2004):75–80.Google Scholar
Goddard, E.W., and Amuah, A.K.. “The Demand for Canadian Fats and Oils: A Case Study of Advertising Effectiveness.” American Journal of Agricultural Economics 71,3(1989):741-49.Google Scholar
Green, R.D., Carman, H.F., and McManus, K.. “Some Empirical Methods of Estimating Advertising Effects in Demand Systems: An Application to Dried Fruits.” Western Journal of Agricultural Economics 16,1(1991):63–71.Google Scholar
Henneberry, S.R., Mutondo, J.E., and Brorsen, B.W.. “Global Welfare Impacts of U.S. Meat Promotion Activities.” Agricultural and Resource Economics Review 38,3(2009):418-30.Google Scholar
Huang, K.S., and Lin, B.H.. Estimation of Food Demand and Nutrient Elasticities from Household Survey Data. Technical Bulletin 1887. U.S. Department of Agriculture, Economic Research Service, Food and Rural Economic Division, 2000.Google Scholar
Kaiser, H.M., Liu, D.J., and Consignado, T.. “An Economic Analysis of California Raisin Export Promotion.” Agribusiness 19,2(2003): 189–201.Google Scholar
Kinnucan, H.W. “A Note on Measuring Returns to Generic Advertising in Interrelated Markets.” Journal of Agricultural Economics 47,2(1996):261-67.Google Scholar
Kinnucan, H.W., and Cai, H.. “A Benefit-Cost Analysis of U.S. Agricultural Trade Promotion.” American Journal of Agricultural Economics 93,1(2011):194–208.Google Scholar
Kinnucan, H.W., Miao, Y., Xiao, H., and Kaiser, H.M.. “Effects of Advertising on U.S. Non-Alcoholic Beverage Demand: Evidence from a Two-Stage Rotterdam Model.” Advances in Applied Microeconomics 10(2001): 1–29.Google Scholar
Lansing, R. “California Food & Ag Board Examines Impacts of Farm Bill Expiration: Wine and Grape Programs Affected.” WineBusiness.com. Available at: www.winebusiness.com/news/?go=getArticle&dataid=107319 (Accessed November 9, 2012).Google Scholar
Le, C.T., Kaiser, H.M., and Tomek, W.. “Export Promotion and Import Demand for U.S. Red Meat in Selected Pacific Rim Countries.” Agribusiness 14,2(1998):95–105.Google Scholar
Ledikwe, J.H., Blanck, H.M., Khan, L.K., Serdula, M.K., Seymour, J.D., Tohill, B.C., and Rolls, B.J.. “Dietary Energy Density Is Associated with Energy Intake and Weight Status in U.S. Adults.” The American Journal of Clinical Nutrition 83,6(2006): 1362-68.Google Scholar
Ludwig, D.S. “The Glycemic Index: Physiological Mechanisms Relating to Obesity, Diabetes, and Cardiovascular Disease.” Journal of the American Medical Association 287,18(2002): 2414-23.Google Scholar
Mangunkusumo, R.T., Brug, J., de Koning, H.J., van der Lei, J., and Raat, H.. “School-Based Internet-Tailored Fruit and Vegetable Education Combined with Brief Counseling Increases Children's Awareness of Intake Levels.” Public Health Nutrition 10,3(2007):273-79.Google Scholar
Mozaffarian, D., Hao, T., Rimm, E.B., Willett, W.C., and Hu, F.B.. “Change in Diet and Lifestyle and Long-Term Weight Gain in Women and Men.” The New England Journal of Medicine 364,25(2011):2392-404.Google Scholar
National Association of Wheat Growers. “Senator Foiled in Attempt to End Farm Bill Market Access Program (MAP).” AgFax.com. Internet site: http://agfax.com/2012/07/19/senator-foiled-in-attempt-to-end-farm-bill-market-access-program-map/ (Accessed July 19, 2012).Google Scholar
Nerlove, M., and Arrow, K.J.. “Optimal Advertising Policy under Dynamic Conditions.” Economica 29,114(1962):129-42.CrossRefGoogle Scholar
Okrent, A.M., and Alston, J.M.. Demand for Food in the United States: a Review of the Literature, Evaluation of Previous Estimates and Presentation of New Estimates of Demand. Berkeley, CA: Giannini Foundation of Agricultural Economics Monograph 48. 2011.Google Scholar
Okrent, A.M., and Alston, J.M.. “The Effects of Farm Commodity and Retail Food Policies on Obesity and Economic Welfare in the United States.” American Journal of Agricultural Economics 94,3(2012):611–46.Google Scholar
Piggott, N.E., Chalfant, J.A., Alston, J.M., and Griffith, G.R.. “Demand Response to Advertising in the Australian Meat Industry.” American Journal of Agricultural Economics 78,2(1996):268-79.CrossRefGoogle Scholar
Pollard, C.M., Miller, M.R., Daly, A.M., Crouchley, K.E., O'Donoghue, K.J., Lang, A.J., and Binns, C.W.. “Increasing Fruit and Vegetable Consumption: Success of the Western Australia Go for 2&5® Campaign.” Public Health Nutrition 11,3(2008):314-20.Google Scholar
Pomerleau, J., Lock, K., Knai, C., and McKee, M.. “Intervention Designed to Increase Adult Fruit and Vegetable Intake Can Be Effective: A Systematic Review of the Literature.” The Journal of Nutrition 135,10(2005):2486-95.Google Scholar
Richards, T.J., Ispelen, P.V., and Kagan, A.. “A Two-Stage Analysis of the Effectiveness of Promotion Programs for U.S. Apples.” American Journal of Agricultural Economics 79,3(1997):825-37.CrossRefGoogle Scholar
Rickard, B.J., Liaukonyte, J., Kaiser, H.M., and Richards, T.J.. “Consumer Response to Commodity-Specific and Broad-Based Promotion Programs for Fruits and Vegetables.” American Journal of Agricultural Economics 93,5(2011): 1312-27.Google Scholar
Rosson, C.P., Hamming, M.D., and Jones, J.W.. “Foreign Market Promotion Programs: An Analysis of Promotional Response for Apples, Poultry and Tobacco.” Agribusiness 2,1(1986): 33–42.Google Scholar
Stables, G.J., Subar, A.F., Patterson, B.H., Dodd, K., Heimendinger, J., Van Duyn, M.A.S., and Nebeling, L.. “Changes in Fruit and Vegetable Consumption and Awareness among U.S. Adults: Results of 1991 and 1997 5-a-Day for Better Health Program Surveys.” Journal of the American Dietetic Association 102,6(2002): 809-17.Google Scholar
USDA Economic Research Service. Food Availability (per capita) Data System. Internet site: www.ers.usda.gov/data-products/food-availability-(per-capita)-data-system.aspx#26715 (Accessed October 15, 2012a).Google Scholar
USDA Economic Research Service. U.S. and State Farm Income and Wealth Statistics. Internet site: www.ers.usda.gov/data-products/farm-income-and-wealth-statistics.aspx (Accessed October 15, 2012b).Google Scholar
USDA Food and Nutrition Information Center. Dietary Guidance: Tables, D.R.I. USDA Food and Nutrition Information Center (FNIC). Dietary Guidance: DRI Tables, Dietary Reference Intakes. Internet site: http://fnic.nal.usda.gov/dietary-guidance/dietary-reference-intakes/dri-tables (Accessed November 21, 2012).Google Scholar
USDA Foreign Agricultural Service. Global Agricultural Trade System (GATS). Internet site: www.fas.usda.gov/gats/ExpressQuery1.aspx (Accessed October 15, 2012a).Google Scholar
USDA Foreign Agricultural Service. Total Available FY 2011 Funding for Market Access Program. Internet site: www. fas.usda.gov/info/webstories/map_042911.asp (Accessed October 15, 2012b).Google Scholar
USDA Foreign Agricultural Service. Total Available FY 2011 Funding for Foreign Market Development Program. Internet site: www.fas.usda.gov/info/webstories/fmd_04291Lasp (Accessed October 15, 2012c).Google Scholar
U.S. General Accountability Office. 1999. “Changes Made to Market Access Program, but Questions Remain on Economic Impact.” NSIAD-99-38. General Accountability Office. Internet site: www.gao.gov/products/NSIAD-99-38 (Accessed August 21, 2012).Google Scholar
U.S. Grains Council (USGC). “Export Promotion Programs Under Fire as Farm Bill Debate Erupts on Senate Floor.” Feed and Grains. Internet site: www.feedandgrain.com/news/10950117/export-promotion-programs-under-fire-as-farm-bill-debate-erupts-on-senate-floor (Accessed May 28, 2013).Google Scholar
Wohlgenant, M.K. “Distribution of Gains from Research and Promotion in Multi-Stage Production Systems: The Case of the U.S. Beef and Pork Industries.” American Journal of Agricultural Economics 75,3(1993):642-51.Google Scholar
Zhang, Q., and Wang, Y.. “Trends in the Association between Obesity and Socioeconomic Status in U.S. Adults: 1971 to 2000.” Obesity Research 12,10(2004): 1622-32.Google Scholar